2.2.1ÌýÌýÌýÌý EPF/EPS social security and pension
In India, EPF scheme is governed by the EPFO and the EPF Act which is responsible for providing social security and retirements benefits to members of the scheme.
An employer must register with the EPFO if the number of employees in the organisation exceeds 20. If the number of employees is less than 20, the employer may voluntarily register.
The EPF contribution is split into two components:
| Table 6 |
| Scheme name | Contribution purpose | Contributed by | Rate of contribution |
| EPF Scheme | Towards retirement corpus whilst in employment | – employee
– employer | 12% of basic salary
12% (out of which 67% is towards EPF scheme which is 8.33%)* |
| Employee Pension Scheme (EPS) | To generate pension after retirement | Employer | 33% of the employer's
share which is 3.67%* |
* The manner of contribution is illustrated
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Web page updated on 17 Mar 2025 15:31